(Advanced analysis)Answer the question on the basis of the following consumption and investment data for a private closed economy.Figures are in billions of dollars. C = 60 + .6Y I = I₀ = 30 Refer to the data.The equilibrium level of income (Y)is: A) 360. B) 225. C) 200. D) 135.

Question

Quizplus · Accepted Answer

To find the equilibrium level of income(Y), we need to use the formula Y = C + I, where C is consumption and I is investment. 
Substituting the given values, we get Y = (60 + 0.6Y) + 30 
Solving for Y, we get Y = 225. 
Therefore, the equilibrium level of income(Y) is 225, which is option B.

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